Fulham FC £ Debt

[Admin]

Didn't I hear somewhere that the actually debts are not bolted to Fulham Football Club but Fayed himself or some kind of subsidiary business to the club called Fulham Leisure Ltd? It also has something to do with the new club badge or I could be wrong?

[jarv]

The ,oral of the story is....if you have an idea or a plan to generate some wealth for yourself, don'y buy a football club....(although Bates and Mandaric did OK for a quid investment).

[BestOfBrede]

The ,oral of the story is....if you have an idea or a plan to generate some wealth for yourself, don'y buy a football club....(although Bates and Mandaric did OK for a quid investment).

You had to go and lower the tone didn't you 064.gif

[MasterHaynes]

ALso bear in mind that he was not the sole shareholder, he had financial backers and his brother that would also have been part of any divvying up of the profit.

[Oiseau]

Al Fayed will probably get the money back when he sells the club. That's really the only way you can make money from owning a football club (unless you have manager who can balance a budget like Wenger): selling it on to the next fool.

[TommyBarrs]

i read something a little while ago, said chelsea was 731 in debt thats mega dosh !

paying back 10 million a year is a lot of money for a club like fulham. i suppose building that extra 5K on to the stadium would help towards it ( every little helps ) i can see him also trying to upgrade the hammy and putny ends in a few seasons. i think we could get 35-38 K JH stand of course can not be touch. and i really wouldn't want to lose the style of the old place like the cottage etc.

can someone tell me this new rules coming in next year whats it all about, i don't get it. people been telling me but still buggered with it.

[TheDon]

I dunno why Al Fayed didnt just write the debt off like Abramovich did at Chelski. Its not like he's short, after selling Harrods for 1.4billion...and supposedly loves the club (granted 200m is still alot of money)
[/quote]

Height: Mohamed Al -Fayed is 5' 11" (1m80) tall.
guess he`s not really short

[b+w geezer]

The club's finances are extraordinarily complex and opaque

MAF's personal finances match that description, meaning we have no idea whatsoever how his total assets compare with his total borrowings. That in turn means we don't know how big a sacrifice, or even how feasible it would be, for him to write off what the club owes him.

The club's main income and expenditure streams are in the public domain, so it's trading position is clear enough, as is the size of the debt, but the real meaning of that debt is not. It will only become so when it needs to be repaid to any significant extent or, conversely, is written off.

[WayneKerrins]

[
Making a loss is of course bad but making a profit leads to a tax liability so what needs to happen is that profits are utilised so as to avoid tax. Repaying loans is one way of doing that.
[/quote]
That's completely incorrect. Loan repayments are a balance sheet item and don't effect the p and l apart from reducing interest payments ( which increases profit and therefore tax). As Fayeds loans aren't interest bearing there is no p and l effect of our repaying the loans.